Logo

SMTC

Semtech Corporation

SMTC

Semtech Corporation • NASDAQ
$74.16 ▲ 0.97% (+0.71)
Market Cap $6.34 B
52w High $79.52
52w Low $24.05
Dividend Yield 0%
P/E 132.43
Volume 951.08K
Outstanding Shares 85.52M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2026 $266.971M ▲ $107.421M ▼ $-2.862M ▲ -1.072% ▲ $-0.033 ▲ $40.8M ▲
Q2-2026 $257.589M ▲ $150.297M ▲ $-27.064M ▼ -10.507% ▼ $-0.31 ▼ $-4.534M ▼
Q1-2026 $251.06M ▲ $95.322M ▼ $19.345M ▼ 7.705% ▼ $0.22 ▼ $45.182M ▲
Q4-2025 $251M ▲ $109.266M ▲ $39.1M ▲ 15.578% ▲ $0.48 ▲ $31.04M ▲
Q3-2025 $236.825M $103.183M $-7.586M -3.203% $-0.1 $17.8M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2026 $164.7M ▼ $1.406B ▲ $746.1M ▼ $659.8M ▲
Q2-2026 $168.56M ▲ $1.406B ▼ $852.993M ▼ $552.892M ▼
Q1-2026 $156.474M ▼ $1.432B ▲ $863.14M ▼ $568.815M ▲
Q4-2025 $164.459M ▲ $1.419B ▲ $876.838M ▼ $542.426M ▲
Q3-2025 $136.504M $1.379B $1.519B $-139.684M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2026 $-2.862M ▲ $47.462M ▲ $-4.054M ▲ $-47.086M ▼ $-3.89M ▼ $44.643M ▲
Q2-2026 $-27.064M ▼ $44.395M ▲ $-5.131M ▼ $-27.657M ▼ $12.086M ▲ $42.04M ▲
Q1-2026 $19.345M ▼ $27.824M ▼ $-5.071M ▲ $-19.361M ▼ $4.731M ▼ $25.645M ▼
Q4-2025 $39.1M ▲ $33.496M ▲ $-7.802M ▼ $-9.603M ▼ $15.239M ▼ $30.47M ▼
Q3-2025 $-7.586M $29.575M $-1.413M $-7.507M $20.576M $34.934M

Revenue by Products

Product Q1-2025Q2-2025Q3-2025Q4-2025
Advanced Protection And Sensing Products Group
Advanced Protection And Sensing Products Group
 $80.00M ▲$80.00M ▲$80.00M ▲$90.00M ▲
IoT Systems And Connectivity
IoT Systems And Connectivity
 $70.00M ▲$80.00M ▲$80.00M ▲$90.00M ▲
Signal Integrity
Signal Integrity
 $60.00M ▲$60.00M ▲$70.00M ▲$70.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Semtech’s revenue has been climbing steadily over the last few years, showing that demand for its products is generally moving in the right direction. However, profitability has been very uneven. The company went from being consistently profitable to posting a very large loss during its acquisition and integration phase, and it is still losing money overall, though much less than at the worst point. Gross margins have recovered from a sharp dip, but operating margins remain much weaker than in the past, which suggests ongoing restructuring, integration, and investment costs are still weighing on earnings. The key question going forward is whether the company can translate its higher revenue base into consistently profitable growth again.

Balance Sheet

Balance Sheet The balance sheet reflects a company that took on a lot of debt to transform itself and is now working its way back to a healthier position. Total assets jumped with the big acquisition and then shrank as losses and write-downs flowed through, but have now stabilized. Debt rose sharply during the deal period and remains meaningfully higher than in the pre-acquisition years, although it has been brought down quite a bit more recently, which reduces financial risk. Equity actually turned negative at one point, signaling balance sheet strain, but has moved back into positive territory, a sign of partial repair. Overall, leverage is still notable, but the direction of change has become more reassuring than it was right after the deal.

Cash Flow

Cash Flow Historically, Semtech generated solid cash from its operations with relatively modest investment needs, which is typical for a fab-light semiconductor business. During the heavy integration and restructuring period, operating cash flow turned negative, underlining the financial stress of the transition. More recently, cash generation has turned positive again but at a lower level than before, indicating that the recovery in cash flow is still in its early stages. Capital spending has stayed lean and predictable, which helps free cash flow, but also means future growth depends heavily on getting more out of existing assets and R&D rather than large new physical investments. The company’s cash flow profile looks fragile but improving, and closely tied to restoring profitability.

Competitive Edge

Competitive Edge Semtech occupies attractive niches in semiconductors rather than trying to compete head-on across the entire industry. It has a strong position in low-power, long-range IoT connectivity through its LoRa technology, a meaningful role in high-speed data center connectivity, and differentiated offerings in smart sensing and professional AV over Ethernet. The LoRa ecosystem and LoRa Alliance give it a network effect and switching-cost advantage, while the Sierra Wireless acquisition broadens the portfolio into cellular IoT, creating a more comprehensive connectivity platform. At the same time, Semtech competes in markets where large, well-funded players are active, technology cycles are fast, and pricing pressure is constant. Its moat is based on specialized technology, ecosystems, and customer relationships rather than sheer scale, which gives it differentiation but also leaves little room for execution missteps.

Innovation and R&D

Innovation and R&D Innovation is clearly at the core of Semtech’s strategy. The company has built multiple technology platforms—LoRa for IoT, high-speed signal integrity solutions for data centers, BlueRiver for AV-over-IP, and PerSe for smart sensing—that address long-term trends like cloud growth, 5G, and the proliferation of connected devices. Its focus on power efficiency and system-level solutions (chips plus software and services) helps it stand out in power-sensitive and performance-critical applications. The roadmap appears rich: next-generation LoRa with higher data rates, 800G and future 1.6T interconnects for data centers, 5G RedCap IoT modules, and expanded sensing capabilities. The trade-off is that sustaining this innovation engine requires continued heavy R&D spending, which pressures margins in the short term but is central to maintaining its technological edge.

Summary

Semtech is in the middle of a strategic transformation from a niche analog chip supplier into a broader connectivity and sensing platform company, anchored by LoRa, cellular IoT from Sierra Wireless, and high-speed data center products. Revenue has grown well, but the cost and complexity of this shift have led to volatile earnings and a period of sizable losses. The balance sheet shows the footprint of a large, debt-funded acquisition that initially strained the company, but recent deleveraging and the return to positive equity point to gradual repair. Cash flow is recovering but not yet back to historical strength, reflecting that the financial turnaround still has work to do. Longer term, the company’s differentiated technologies, ecosystem positions, and robust R&D pipeline provide real opportunities, while the main risks center on execution, competition from larger players, and the need to consistently convert innovation and revenue growth into stable, sustainable profitability.

NEWS

November 24, 2025 · 4:05 PM UTC

Semtech Announces Third Quarter of Fiscal Year 2026 Results

Read more

November 12, 2025 · 8:00 AM UTC

Semtech Unveils Unified Software Platform (USP) for LoRa Plus™

Read more

November 10, 2025 · 4:30 PM UTC

Semtech Announces Third Quarter of Fiscal Year 2026 Conference Call

Read more

November 6, 2025 · 12:37 PM UTC

Semtech Corporation Long-Term Shareholder Announcement: Johnson Fistel Encourages Investors to Reach Out For More Information About Investigation

Read more

October 30, 2025 · 10:14 AM UTC

Halper Sadeh LLC Encourages Semtech Corporation Shareholders to Contact the Firm to Discuss Their Rights

Read more